S&P Global Ratings has retained a stable outlook on the North American property/casualty (P/C), bond, mortgage, and title insurance sectors in 2022, while the global reinsurance sector remains on negative outlook. Capital strength continues to be the leading pillar supporting the credit quality of many North American non-life insurers. We expect our rated insurers will maintain underwriting discipline, effective exposure management, and higher asset quality with minimal changes to duration to navigate rising claims inflation, natural catastrophes, market volatility, and a rising interest rate environment. Differences in underwriting performance were tied to the risk exposure and concentration in certain perils and geographies.
In 2022, we expect that share buy-backs may moderate due to the impact of rising interest rates on the valuation of fixed income portfolios and the consequent downward pressure on shareholders' equity. Merger and acquisition activity will again likely remain cautiously selective as companies pursue product and geographic diversification and scale opportunities to bolster market presence. Organic growth in 2022 will likely be similar to the prior year as rate increases continue. As interest rates rise, investment yields and investment income will begin improving.
We have listed all of our publicly rated non-life companies in the nonlife insurance space (P/C, reinsurance, mortgage, bond, and title insurance) from strongest to weakest based on financial strength rating and outlook as of June 1, 2022. Companies with the same rating and outlook are further listed alphabetically. Ratings are displayed as long-term rating/outlook or on CreditWatch.
Table 1
North American Property/Casualty Insurers And Reinsurers | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Business risk profile | Competitive position | Financial risk profile | Capital and earnings | Risk exposure | CRA | SACP | Group support | Financial strength rating | Holding company rating | Outlook | |||||||||||||
Berkshire Hathaway Insurance Group |
Very Strong | Excellent | Very Strong | Excellent | Moderately High | 1 | aa+ | 0 | AA+ | AA | Stable | |||||||||||||
United Services Automobile Association |
Very Strong | Excellent | Excellent | Excellent | Moderately Low | 1 | aa+ | 0 | AA+ | AA | Stable | |||||||||||||
Chubb Ltd. |
Very Strong | Excellent | Very Strong | Very Strong | Moderately Low | 0 | aa | 0 | AA | A | Stable | |||||||||||||
Progressive Corp. |
Very Strong | Very Strong | Excellent | Excellent | Moderately Low | 0 | aa | 0 | AA | A | Stable | |||||||||||||
State Farm Mutual Automobile Insurance Co. |
Very Strong | Excellent | Excellent | Excellent | Moderately Low | 0 | aa | 0 | AA | NR | Stable | |||||||||||||
The Travelers Cos. Inc. |
Very Strong | Excellent | Excellent | Excellent | Moderately Low | 0 | aa | 0 | AA | A | Stable | |||||||||||||
Allstate Corp. |
Very Strong | Excellent | Very Strong | Very Strong | Moderately Low | 0 | aa- | 0 | AA- | A- | Stable | |||||||||||||
Alleghany Corp. |
Strong | Strong | Strong | Excellent | High | 1 | a+ | 0 | A+ | BBB+ | CW Positive | |||||||||||||
ACUITY a Mutual Insurance Co. |
Strong | Strong | Excellent | Excellent | Moderately Low | 0 | a+ | 0 | A+ | NR | Stable | |||||||||||||
American Financial Group Inc. |
Strong | Strong | Very Strong | Very Strong | Moderately Low | 0 | a+ | 0 | A+ | BBB+ | Stable | |||||||||||||
Cincinnati Financial Corp. |
Strong | Strong | Very Strong | Excellent | Moderately High | 0 | a+ | 0 | A+ | BBB+ | Stable | |||||||||||||
CNA Financial Corp. |
Strong | Strong | Very Strong | Excellent | Moderately High | 0 | a+ | 0 | A+ | A- | Stable | |||||||||||||
Everest Re Group Ltd. |
Very Strong | Very Strong | Satisfactory | Very Strong | High | 0 | a+ | 0 | A+ | A- | Stable | |||||||||||||
Factory Mutual Insurance Co. |
Very Strong | Very Strong | Strong | Excellent | High | 0 | a+ | 0 | A+ | NR | Stable | |||||||||||||
Hartford Financial Services Group Inc. |
Very Strong | Very Strong | Strong | Very Strong | Moderately High | 0 | a+ | 0 | A+ | BBB+ | Stable | |||||||||||||
Nationwide Mutual Insurance Co. |
Very Strong | Very Strong | Strong | Very Strong | Moderately High | 0 | a+ | 0 | A+ | BBB+ | Stable | |||||||||||||
Old Republic International Corp. |
Strong | Strong | Very Strong | Excellent | Moderately High | 0 | a+ | 0 | A+ | BBB+ | Stable | |||||||||||||
PartnerRe Ltd. |
Very Strong | Very Strong | Strong | Excellent | High | 0 | a+ | 0 | A+ | A- | Stable | |||||||||||||
RenaissanceRe Holdings Ltd. |
Very Strong | Very Strong | Strong | Excellent | High | 0 | a+ | 0 | A+ | A- | Stable | |||||||||||||
W.R. Berkley Corp. |
Strong | Strong | Very Strong | Very Strong | Moderately Low | 0 | a+ | 0 | A+ | BBB+ | Stable | |||||||||||||
American International Group and P/C subs | Very Strong | Very Strong | Strong | Very Strong | Moderately High | 0 | a+ | 0 | A+ | BBB+ | Negative | |||||||||||||
Arch Capital Group Ltd. |
Strong | Strong | Very Strong | Very Strong | Moderately Low | 0 | a+ | 0 | A+ | A- | Negative | |||||||||||||
AXIS Capital Holdings Ltd. |
Strong | Strong | Very Strong | Excellent | Moderately High | 0 | a+ | 0 | A+ | A- | Negative | |||||||||||||
American Family Mutual Insurance Co. S.I. |
Strong | Strong | Strong | Very Strong | Moderately High | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Assurant Inc. |
Strong | Strong | Strong | Very Strong | Moderately High | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Fairfax Financial Holdings Ltd. |
Very Strong | Very Strong | Satisfactory | Strong | Moderately High | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Farmers Insurance Exchange |
Strong | Strong | Fair | Satisfactory | Moderately High | 0 | bbb | 3 | A | NR | Stable | |||||||||||||
Horace Mann Educators Corp. |
Strong | Strong | Strong | Very Strong | Moderately High | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Kemper Corp. |
Strong | Strong | Very Strong | Very Strong | Moderately Low | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Liberty Mutual Group Inc. |
Very Strong | Very Strong | Satisfactory | Strong | Moderately High | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Markel Corp. |
Strong | Strong | Strong | Strong | Moderately Low | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Oil Insurance Ltd. |
Satisfactory | Satisfactory | Excellent | Excellent | Moderately Low | 0 | a | 0 | A | NR | Stable | |||||||||||||
RLI Corp. |
Strong | Strong | Strong | Strong | Moderately Low | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Selective Insurance Group Inc. |
Strong | Strong | Strong | Very Strong | Moderately High | 0 | a | 0 | A | BBB | Stable | |||||||||||||
The Hanover Insurance Group Inc. |
Strong | Strong | Strong | Very Strong | Moderately High | 0 | a | 0 | A | BBB | Stable | |||||||||||||
Associated Electric & Gas Ins. Services Ltd. |
Strong | Strong | Satisfactory | Strong | Moderately High | 0 | a- | 0 | A- | NR | Positive | |||||||||||||
Fidelis Insurance Holdings Ltd. |
Strong | Strong | Strong | Excellent | High | 0 | a- | 0 | A- | BBB | Positive | |||||||||||||
Co-operators Financial Services Ltd. |
Strong | Strong | Strong | Very Strong | Moderately High | 0 | a- | 0 | A- | BBB | Stable | |||||||||||||
Greater New York Mutual Insurance Co. |
Satisfactory | Satisfactory | Strong | Very Strong | Moderately High | 0 | a- | 0 | A- | NR | Stable | |||||||||||||
Lancashire Holdings Ltd. |
Strong | Strong | Strong | Excellent | High | 0 | a- | 0 | A- | BBB | Stable | |||||||||||||
Argo Group International Holdings Ltd. |
Strong | Strong | Strong | Very Strong | Moderately High | 0 | a- | 0 | A- | BBB- | Negative | |||||||||||||
Pinnacol Assurance |
Fair | Fair | Strong | Very Strong | Moderately High | 0 | bbb+ | 0 | BBB+ | NR | Stable | |||||||||||||
R.V.I. Guaranty Co. Ltd. |
Satisfactory | Satisfactory | Strong | Very Strong | Moderately Low | 0 | bbb+ | 0 | BBB+ | NR | Stable | |||||||||||||
American Steamship Owners Mutual P&I Assoc. Inc. |
Satisfactory | Satisfactory | Marginal | Fair | Moderately High | 1 | bbb- | 0 | BBB- | NR | Negative | |||||||||||||
Hochheim Prairie Farm Mutual Insurance Assn. |
Fair | Fair | Weak | Marginal | Moderately High | 0 | b+ | 0 | B+ | NR | Stable | |||||||||||||
Enstar Group Ltd. |
Strong | Strong | Satisfactory | Very Strong | High | 0 | a- | 0 | NR | BBB | Positive | |||||||||||||
Finial Holdings Inc. |
Fair | Fair | Strong | Very Strong | Moderately Low | 0 | bbb+ | 3 | NR | BBB+ | Stable | |||||||||||||
ProAssurance Corp. |
Satisfactory | Satisfactory | Fair | Satisfactory | Moderately High | 0 | bbb | 0 | NR | BB | Negative | |||||||||||||
NR--Not rated. Ratings as of June 1, 2022. Source: S&P Global Ratings. |
Table 2
North American Mortgage Insurers | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Business risk profile | Competitive position | Financial risk profile | Capital and earnings | Risk exposure | CRA | SACP | Group support | Financial strength rating | Holding company rating | Outlook | |||||||||||||
Sagen MI Canada Inc. (f/k/a Genworth MI Canada Inc.) |
Strong | Strong | Excellent | Excellent | Moderately Low | 0 | a+ | 0 | A+ | BBB+ | Stable | |||||||||||||
Essent Guaranty Inc. |
Satisfactory | Satisfactory | Satisfactory | Satisfactory | Moderately Low | 0 | bbb+ | 0 | BBB+ | NR | Stable | |||||||||||||
MGIC Investment Corp. |
Satisfactory | Satisfactory | Satisfactory | Satisfactory | Moderately Low | 0 | bbb+ | 0 | BBB+ | BB+ | Stable | |||||||||||||
Radian Group Inc. |
Satisfactory | Satisfactory | Satisfactory | Satisfactory | Moderately Low | 0 | bbb+ | 0 | BBB+ | BB+ | Stable | |||||||||||||
Enact Mortgage Insurance Corp. |
Satisfactory | Satisfactory | Satisfactory | Satisfactory | Moderately Low | 0 | bbb | 0 | BBB | BB | Positive | |||||||||||||
NMI Holdings Inc. |
Satisfactory | Satisfactory | Fair | Satisfactory | Moderately High | 0 | bbb | 0 | BBB | BB | Positive | |||||||||||||
Genworth Financial Inc. |
Satisfactory | Satisfactory | Fair | Satisfactory | Moderately High | 0 | N/A | 0 | NR | B+ | Positive | |||||||||||||
N/A--Not applicable. NR--Not rated. Ratings as of June 1, 2022. Source: S&P Global Ratings. |
Table 3
North American Bond Insurers | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Business risk profile | Competitive position | Financial risk profile | Capital and earnings | Risk exposure | CRA | SACP | Group support | Financial strength rating | Holding company rating | Outlook | |||||||||||||
Assured Guaranty Ltd. |
Very Strong | Very Strong | Very Strong | Excellent | Moderately High | 0 | aa | 0 | AA | A | Stable | |||||||||||||
Build America Mutual Assurance Co. |
Very Strong | Very Strong | Very Strong | Excellent | Moderately High | 0 | aa | 0 | AA | NR | Stable | |||||||||||||
NR--Not rated. Ratings as of June 1, 2022. Source: S&P Global Ratings. |
Table 4
North American Title Insurers | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Business risk profile | Competitive position | Financial risk profile | Capital and earnings | Risk exposure | CRA | SACP | Group support | Financial strength rating | Holding company rating | Outlook | |||||||||||||
Fidelity National Financial Inc. |
Strong | Strong | Very Strong | Very Strong | Moderately Low | 0 | a | 0 | A | BBB | Stable | |||||||||||||
First American Financial Corp. |
Satisfactory | Satisfactory | Very Strong | Very Strong | Moderately Low | 0 | a- | 0 | A- | BBB- | Stable | |||||||||||||
Ratings as of June 1, 2022. Source: S&P Global Ratings. |
This report does not constitute a rating action.
Primary Credit Analyst: | Megan O'Dowd, New York +1 2124381202; megan.odowd@spglobal.com |
Secondary Contacts: | Patricia A Kwan, New York + 1 (212) 438 6256; patricia.kwan@spglobal.com |
John Iten, Princeton + 1 (212) 438 1757; john.iten@spglobal.com |
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